Question 1

Which of the following is not true about variances?

Accepted Answer

A) Variances alert managers to events not easily or immediately evident. 
B) Variances permit managers can take corrective actions or exploit available opportunities. 
C) Variances prompt managers to probe how well the company has performed in implementing its strategies. 
D) Variances sometimes signal managers that their strategies are ineffective. 
E) Variances never provide a signal to managers that their strategies are ineffective. 
A) Variances alert managers to events not easily or immediately evident. 
B) Variances permit managers can take corrective actions or exploit available opportunities. 
C) Variances prompt managers to probe how well the company has performed in implementing its strategies. 
D) Variances sometimes signal managers that their strategies are ineffective. 
E) Variances never provide a signal to managers that their strategies are ineffective.

Question 2

Which of the following is not a step related to ongoing-budget related processes that managers cycle through during the course of the fiscal year?

Accepted Answer

A) Managers take into account past performance,market feedback,and anticipated future changes to initiate plans for the next period. 
B) Managers and management work together to develop plans for the company as a whole and the performance of its subunits,such as departments or divisions. 
C) At the beginning of the year,senior managers give subordinate managers a frame of reference,a set of specific financial or nonfinancial expectations to compare actual results. 
D) During the course of the year,management accountants help managers investigate variations from plans,such as unexpected decline in sales. 
E) The use of information technology resulted in less ongoing-budget related processes and managers no longer take into account past performances,market feedback,or anticipated changes in the ongoing-budget related processes. 
A) Managers take into account past performance,market feedback,and anticipated future changes to initiate plans for the next period. 
B) Managers and management work together to develop plans for the company as a whole and the performance of its subunits,such as departments or divisions. 
C) At the beginning of the year,senior managers give subordinate managers a frame of reference,a set of specific financial or nonfinancial expectations to compare actual results. 
D) During the course of the year,management accountants help managers investigate variations from plans,such as unexpected decline in sales. 
E) The use of information technology resulted in less ongoing-budget related processes and managers no longer take into account past performances,market feedback,or anticipated changes in the ongoing-budget related processes.

Question 3

Responsibility accounting helps managers to first focus on whom they should ask to obtain information and not on whom they should blame.

Accepted Answer

A) True 
 B)False

Question 4

Differences between actual results and budgeted amounts can help managers implement and evaluate strategies.

Accepted Answer

A) True 
 B)False

Question 5

As they prepare operating budgets,managers only focus on what they can achieve.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is not a question a manager considers in developing successful strategies?

Accepted Answer

A) What are our objectives? 
B) What organizational and financial structures serve us best? 
C) Who are our competitors? 
D) How do we create value for our customers while distinguishing ourselves from our competitors? 
E) Are the markets for our products local,regional,national,or global? 
A) What are our objectives? 
B) What organizational and financial structures serve us best? 
C) Who are our competitors? 
D) How do we create value for our customers while distinguishing ourselves from our competitors? 
E) Are the markets for our products local,regional,national,or global?

Question 7

A ________ expresses management's operating and financial plans for a specified period.

Accepted Answer

A) strategy 
B) coordination 
C) master budget 
D) communication 
E) pro forma statement 
A) strategy 
B) coordination 
C) master budget 
D) communication 
E) pro forma statement

Question 8

Describe the advantages of budgets.

Accepted Answer

The advantages to managers tha

Question 9

A rolling budget is another approach to the manager's effort to reduce budgetary slack.

Accepted Answer

A) True 
 B)False

Question 10

Budgetary slack provides managers with a hedge against unexpected adverse circumstances.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is not a consideration to managers at multinational companies?

Accepted Answer

A) Currency issues. 
B) Legal environment. 
C) Political environment. 
D) Economic environment. 
E) Similarities in tax regimes. 
A) Currency issues. 
B) Legal environment. 
C) Political environment. 
D) Economic environment. 
E) Similarities in tax regimes.

Question 12

How do variances help managers implement and evaluate strategies?

Accepted Answer

Variances provide the manager knowledge

Question 13

The manager is accountable for revenues and costs in:

Accepted Answer

A) cost centers. 
B) profit centers. 
C) revenue centers. 
D) responsibility centers. 
E) organizational centers. 
A) cost centers. 
B) profit centers. 
C) revenue centers. 
D) responsibility centers. 
E) organizational centers.

Question 14

The financial budget comprises the capital expenditures budget,the cash budget,the budgeted balance sheet,and the budgeted statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is not true about the challenges related to the budget process?

Accepted Answer

A) The budgeting process only involves senior managers. 
B) Top managers do not want lower-level managers to participate in the budgeting process. 
C) Managers use short periods of time to implement the budgeting process. 
D) Lower-level managers who feel that top management does not "believe" in budgets are likely to be active participants in the budget process. 
E) Lower-level managers who feel that top management does not "believe" in budgets are unlikely to be active participants in the budget process. 
A) The budgeting process only involves senior managers. 
B) Top managers do not want lower-level managers to participate in the budgeting process. 
C) Managers use short periods of time to implement the budgeting process. 
D) Lower-level managers who feel that top management does not "believe" in budgets are likely to be active participants in the budget process. 
E) Lower-level managers who feel that top management does not "believe" in budgets are unlikely to be active participants in the budget process.

Question 16

The cash budgets are useful because they encourage idle cash and cash deficiencies.

Accepted Answer

A) True 
 B)False

Question 17

The rolling budget is constantly updated to reflect the latest information and makes managers responsive to changing conditions and market needs.

Accepted Answer

A) True 
 B)False

Question 18

Statistical approaches,such as regression and trend analysis,help managers when they forecast sales.

Accepted Answer

A) True 
 B)False

Question 19

Managers can use computer-based systems,such as enterprise resource planning (ERP),to perform calculations for which of these planning models?

Accepted Answer

A) Cash analysis. 
B) Master budget. 
C) Production analysis. 
D) Sensitivity analysis. 
E) Financial Planning Models. 
A) Cash analysis. 
B) Master budget. 
C) Production analysis. 
D) Sensitivity analysis. 
E) Financial Planning Models.

Question 20

A budgeting method that focuses of the budgeted cost of the activities necessary to produce and sell products and services is called a(n)________.

Accepted Answer

A) financial budget 
B) operating budget 
C) activity-based budget (AB
B)  
D) budgetary slack 
E) continuous budget 
A) financial budget 
B) operating budget 
C) activity-based budget (AB
B)  
D) budgetary slack 
E) continuous budget

Which of the following is not true about variances?

Which of the following is not a step related to ongoing-budget related processes that managers cycle through during the course of the fiscal year?

Responsibility accounting helps managers to first focus on whom they should ask to obtain information and not on whom they should blame.

Differences between actual results and budgeted amounts can help managers implement and evaluate strategies.

As they prepare operating budgets,managers only focus on what they can achieve.

Which of the following is not a question a manager considers in developing successful strategies?

A ________ expresses management's operating and financial plans for a specified period.

Describe the advantages of budgets.

A rolling budget is another approach to the manager's effort to reduce budgetary slack.

Budgetary slack provides managers with a hedge against unexpected adverse circumstances.

Which of the following is not a consideration to managers at multinational companies?

How do variances help managers implement and evaluate strategies?

The manager is accountable for revenues and costs in:

The financial budget comprises the capital expenditures budget,the cash budget,the budgeted balance sheet,and the budgeted statement of cash flows.

Which of the following is not true about the challenges related to the budget process?

The cash budgets are useful because they encourage idle cash and cash deficiencies.

The rolling budget is constantly updated to reflect the latest information and makes managers responsive to changing conditions and market needs.

Statistical approaches,such as regression and trend analysis,help managers when they forecast sales.

Managers can use computer-based systems,such as enterprise resource planning (ERP),to perform calculations for which of these planning models?

A budgeting method that focuses of the budgeted cost of the activities necessary to produce and sell products and services is called a(n)________.

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Process Costing and Cost Allocation

Activity-Based Costing and Activity-Based Management

Pricing Decisions, customer Profitability, and Cost Management

Determining How Costs Behave

Decision Making and Relevant Information

Quality, inventory Management, and Time

Capital Investments

Flexible Budgets, cost Variances, and Management Control

Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Transfer Pricing

Performance Measurement and Compensation

Filters

Exam 12: Master Budget and Responsibility Accounting

Which of the following is not true about variances?

Which of the following is not a step related to ongoing-budget related processes that managers cycle through during the course of the fiscal year?

Responsibility accounting helps managers to first focus on whom they should ask to obtain information and not on whom they should blame.

Differences between actual results and budgeted amounts can help managers implement and evaluate strategies.

As they prepare operating budgets,managers only focus on what they can achieve.

Which of the following is not a question a manager considers in developing successful strategies?

A ________ expresses management's operating and financial plans for a specified period.

Describe the advantages of budgets.

A rolling budget is another approach to the manager's effort to reduce budgetary slack.

Budgetary slack provides managers with a hedge against unexpected adverse circumstances.

Which of the following is not a consideration to managers at multinational companies?

How do variances help managers implement and evaluate strategies?

The manager is accountable for revenues and costs in:

The financial budget comprises the capital expenditures budget,the cash budget,the budgeted balance sheet,and the budgeted statement of cash flows.

Which of the following is not true about the challenges related to the budget process?

The cash budgets are useful because they encourage idle cash and cash deficiencies.

The rolling budget is constantly updated to reflect the latest information and makes managers responsive to changing conditions and market needs.

Statistical approaches,such as regression and trend analysis,help managers when they forecast sales.

Managers can use computer-based systems,such as enterprise resource planning (ERP),to perform calculations for which of these planning models?

A budgeting method that focuses of the budgeted cost of the activities necessary to produce and sell products and services is called a(n)________.

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Process Costing and Cost Allocation

Activity-Based Costing and Activity-Based Management

Pricing Decisions, customer Profitability, and Cost Management

Determining How Costs Behave

Decision Making and Relevant Information

Quality, inventory Management, and Time

Capital Investments

Flexible Budgets, cost Variances, and Management Control

Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Transfer Pricing

Performance Measurement and Compensation

Filters